ECONOMICS LETTERS, vol.99, no.2, pp.238-241, 2008 (SSCI)
Bidders can bribe the auctioneer before they bid, with the auctioneer lowering the winner's bid if the winner paid the bribe. In equilibrium bidders employ a cutoff strategy and corruption affects neither efficiency nor the bidders' expected payoffs. (C) 2007 Elsevier B.V. All rights reserved.